Gap-up Opening Seen For Sensex, Nifty Amid De-escalation Talk

Indian shares look set to open sharply higher on Wednesday as talks progressed between Russia and Ukraine to end their weeks-long conflict.

Russia’s military reportedly said it would drastically cut back operations focused on Kyiv and Chernihiv after Ukrainian negotiators proposed adopting neutral status in exchange for security guarantees.

‘We’ll see if they follow through with what they’re suggesting,’ U.S. President Joe Biden said. Moscow’s public reaction was positive and the negotiations are expected to continue today.

Benchmark indexes Sensex and the Nifty rose about 0.6 percent each on Tuesday and the rupee soared 43 paise to hit a four-week high of 75.73 against the dollar after a sharp slide in crude prices in the previous session.

Asian markets were broadly higher this morning and the dollar was on the back foot while oil prices climbed after two days of declines.

Gold inched lower to hover near a one-month low after the U.S. Treasury yield curve inverted on Tuesday for the first time since 2019 amid the Fed’s increasingly hawkish approach to tackling inflation.

U.S. stocks posted strong gains overnight as commodity prices declined on signs of encouraging progress in the cease-fire talks between Russia and Ukraine in Turkey.

The Dow climbed 1 percent to book fourth straight day of gains and the tech-heavy Nasdaq Composite added 1.8 percent, while the S&P 500 gained 1.2 percent, exiting the correction it entered in February.

European stocks closed higher for a third straight session Tuesday on news of “constructive” Russia-Ukraine talks and easing inflation concerns.

The pan European Stoxx 600 rallied 1.7 percent. The German DAX surged 2.8 percent, France’s CAC 40 index jumped 3.1 percent and the U.K.’s FTSE 100 advanced 0.9 percent.